Now that I have PCO documentation and authorization, how can I apply for a preferential tariff concession? In total, in 2019, 66.7% of Malaysia`s total trade, or RM 1.22 trillion, was spent on trade with countries covered by regional and bilateral free trade agreements. Exports to free trade countries amounted to $672.1 billion.RM while imports amounted to $551.5 billion.RM. Malaysia is one of ten members of the Association of Southeast Asian Nations (ASEAN), the region`s third largest economy in terms of GDP (12%) and the EU`s third largest trading partner in ASEAN. Although free trade negotiations between the EU and Malaysia have been frozen, a Sustainable Impact Assessment (AIS) has been launched to support free trade negotiations between the two partners. The ASA will assess the potential impact of the trade and trade provisions of the proposed free trade agreement on the economic, social, human rights and environmental aspects in each trading partner and in other countries concerned. In January 2009, the Minister of International Trade and Industry, Muhyiddin Yassine, announced that negotiations for a free trade agreement had been temporarily suspended.  This action was carried out in protest against American support for an Israeli invasion of Gaza, but he had not yet officially informed the cabinet. He had been persuaded by the Prime Minister to inform the cabinet of his decision.  Malaysia`s open macroeconomics and increasing integration into global supply chains mean that transportation and freight logistics in general and seaports in particular are essential for economic growth and high-income status. Given that imports and exports of industrial and bulk products such as crude oil, oil and palm oil products depend on international interconnection and efficient domestic transport, the pursuit of an open economy model has had an impact on seaports, which have been modernized by the commitment of specialized private sector naval terminal operators to operate these ports under long-term concessions under the government regulation. , in line with international best practices. In addition, there has been a growing concern that these ports are well connected to their hinterland by investing in the development of highway and rail capacity. Investments in ports include improved international connectivity, lower logistics costs and increased economic competitiveness, which in turn stimulate foreign and domestic investment, create jobs and contribute to Malaysia`s well-being.
Malaysia`s privileged geographical position in the heart of Southeast Asia and close to major east-west trade routes has also been positioned as an important maritime hub for trans-ship cargo – meaning that Malaysia`s ports benefit other countries in the region by providing international connections via ports such as Port Klang and Port of Tanjung Pelepas. Although the handling activity is not directly related to Malaysia`s exports and exports, it nevertheless has a considerable economic impact in terms of port jobs and related support services and, importantly, in the form of extended maritime connectivity to the rest of the world, as it serves as a hub – ultimately benefiting Malaysian importers and exporters.